SAN DIEGO, Oct. 16, 2015 /PRNewswire/ — Millennium Health today announced that it has reached agreement with a substantial majority of holders of its debt, its current equity holders, the Department of Justice (DOJ), the Centers for Medicare & Medicaid Services (CMS) and other state and federal agencies, on the terms of a financial restructuring plan that would satisfy a previously announced settlement and reduce the company’s debt.
“This agreement represents a major milestone toward achieving our goal of substantially reducing our debt burden and concluding the settlement with the DOJ announced in May. Once our financial restructuring is completed, Millennium’s capital structure will provide a foundation for future success and better position the Company to meet the changing reimbursement landscape head on,” said Chief Executive Officer Brock Hardaway.
The previously announced proposed settlement with the DOJ resolves federal and state claims involving the Company. “This agreement with the DOJ ensures that our employees, customers and the millions of patients they serve will see no disruption in Millennium’s business operations and can move forward in confidence together now that Millennium’s position as a partner to federal and state health care programs is secure,” Mr. Hardaway said.
“While Millennium may debate some of the merits of the DOJ’s allegations, we respect the government’s role in health care oversight and enforcement. At the end of the day, it was time to bring closure to an investigation that began nearly four years ago. Millennium Health is currently a very different organization than we were in the past. We fully embrace our obligation to both commercial and publicly funded health plans to provide value to the health care system overall and ensure that doctors who order our testing solutions adequately demonstrate that those solutions are clinically necessary, and aligned with the latest available clinical guidelines. The company has already taken steps to demonstrate our unwavering commitment to being a good partner to those who order our tests and those who pay for our tests including our recent conversion to an enhanced patient specific ordering portal called CONNECT and our introduction of a Clinical Excellence Committee to help guide appropriate testing and utilization protocols,” Mr. Hardaway added.
The Company intends to begin soliciting formal votes on a restructuring plan from its lenders in the coming weeks. The restructuring support agreement approved today allows the Company to execute its restructuring on either an out-of-court basis or through a prepackaged Chapter 11 proceeding that primarily affects the claims of lenders and equity holders. The entire restructuring proceeding is expected to be concluded by year end.
“We look at today’s announcement as a tremendously positive event that was the result of extensive negotiations with our stakeholders and are confident that it provides the highest value and best outcome for everyone. As we bring this matter to a close, Millennium commends the professionals at DOJ, CMS, and all stakeholders for their commitment to forging a path forward,” said Mr. Hardaway.
About Millennium Health
Millennium Health is a leading health solutions company that aims to get more from medicines by delivering accurate, timely, clinically actionable information to inform treatment decisions. The company believes that everyone has the right to the safest and most effective treatments, and aims to deliver on that idea by providing clinicians and payers with personalized medication intelligence through our comprehensive suite of services, including Millennium PGTSM, Millennium UDTSM and Millennium OFTSM, that can be used to better tailor patient care. More information can be found at www.millenniumhealth.com.
Millennium Health is represented by Skadden Arps Slate Meagher & Flom, Hogan Lovells, and advised by Lazard and Alvarez & Marsal.